/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
TORONTO, Sept. 14, 2020 /CNW/ - Canada Nickel Company Inc.
(TSXV: CNC) ("Canada Nickel" or the "Company") is
pleased to announce it has amended its agreement with Echelon
Wealth Partners Inc., as lead underwriter and sole bookrunner, on
behalf of a syndicate of underwriters including Eight Capital and
Haywood Securities Inc. (the "Underwriters"), to increase
the size of the previously announced bought deal offering from
approximately $6.5 million to
approximately $13 million. The
Underwriters have agreed to purchase, on a "bought deal" private
placement basis, 5,350,000 units of the Company (the
"Units") at a price of $1.50
per Unit (the "Unit Issue Price"), for total gross proceeds
of $8,025,000, and 2,950,000
flow-through shares of the Company (the "FT Shares",
collectively with the Units, the "Offered Securities") at a
price of $1.70 per FT Share, for
total gross proceeds of $5,015,000
(the "Offering").
Each Unit will consist of one common share (a "Common
Share") in the capital of the Company and one-half of one
common share purchase warrant (a "Warrant") of the Company.
Each Warrant shall be exercisable to acquire one Common Share (a
"Warrant Share") at a price per Warrant Share of
$2.10 for a period of 24 months from
the closing date of the Offering, subject to an accelerated expiry
option whereby the Company can trigger an accelerated 30-day expiry
of the Warrants if the closing price of the Company's Common Shares
listed on the TSX-V remain higher than $3.25 for 20 consecutive trading days. On the
20th consecutive trading day above $3.25 (the "Acceleration Trigger Date"),
the Warrant expiry date may be accelerated to 30 trading days after
the Acceleration Trigger Date by the issuance of a news release
announcing such acceleration, within two trading days of the
Acceleration Trigger Date.
The net proceeds from the sale of the Units will be used to fund
feasibility study work through 2021 on the Company's Crawford
Nickel-Cobalt Sulphide Project, to accelerate exploration on the
Company's option properties, and for working capital
purposes. The gross proceeds received by the Company from the
sale of the FT Shares will be used to incur Canadian Exploration
Expenses ("CEE") that are "flow-through mining expenditures"
(as such terms are defined in the Income Tax Act (Canada)) on the Company's properties in
Ontario, which will be renounced
to the subscribers with an effective date no later than
December 31, 2020, in the aggregate
amount of not less than the total amount of the gross proceeds
raised from the issue of FT Shares.
The Offering is expected to close on or about September 30, 2020 and is subject to certain
conditions including, but not limited to, the receipt of all
necessary approvals including the approval of the TSX Venture
Exchange and the applicable securities regulatory authorities. The
Offered Securities to be issued under the Offering will be subject
to a hold period in Canada
expiring four months and one day from the closing date of the
Offering.
In connection with the Offering, the Underwriters will receive a
cash commission of 6.0% of the gross proceeds of the Offering and
that number of non-transferable compensation options (the
"Compensation Options") as is equal to 6.0% of the aggregate
number of Offered Securities sold under the Offering. Each
Compensation Option is exercisable into one Unit of the Company at
the Unit Issue Price for a period of 24 months from the closing
date of the Offering.
The securities offered have not been registered under the U.S.
Securities Act of 1933, as amended, and may not be offered or sold
in the United States absent
registration or an applicable exemption from the registration
requirements. This press release shall not constitute an offer to
sell or the solicitation of an offer to buy nor shall there be any
sale of the securities in any State in which such offer,
solicitation or sale would be unlawful.
About Canada Nickel
Canada Nickel Company Inc. is advancing the next generation of
nickel-cobalt sulphide projects to deliver nickel and cobalt
required to feed the high growth electric vehicle and stainless
steel markets. Canada Nickel Company has applied in multiple
jurisdictions to trademark the terms NetZero NickelTM,
NetZero CobaltTM, NetZero IronTM and is
pursuing the development of processes to allow the production of
net zero carbon nickel, cobalt, and iron products. Canada Nickel
provides investors with leverage to nickel and cobalt in low
political risk jurisdictions. Canada Nickel is currently anchored
by its 100% owned flagship Crawford Nickel-Cobalt Sulphide Project
in the heart of the prolific Timmins-Cochrane mining camp.
Cautionary Statement Concerning Forward-Looking
Statements
This press release contains certain information that may
constitute "forward-looking information" under applicable Canadian
securities legislation. Forward looking information includes, but
is not limited to, the use of proceeds of the Offering; the timing
and ability of the Company, if at all, to obtain final approval of
the Offering from the TSX Venture Exchange; the tax treatment of
the FT Shares; the timing of the tax renunciation to the
subscribers; and statements regarding exploration results and
exploration plans. Forward-looking information is necessarily based
upon a number of assumptions that, while considered reasonable, are
subject to known and unknown risks, uncertainties, and other
factors which may cause the actual results and future events to
differ materially from those expressed or implied by such
forward-looking information. Factors that could affect the outcome
include, among others: future prices and the supply of metals, the
results of drilling, inability to raise the money necessary to
incur the expenditures required to retain and advance the property,
environmental liabilities (known and unknown), general business,
economic, competitive, political and social uncertainties, results
of exploration programs, risks of the mining industry, delays in
obtaining governmental approvals, and failure to obtain regulatory
or shareholder approvals. There can be no assurance that such
information will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
information. Accordingly, readers should not place undue reliance
on forward-looking information. All forward-looking information
contained in this press release is given as of the date hereof and
is based upon the opinions and estimates of management and
information available to management as at the date hereof. Canada
Nickel disclaims any intention or obligation to update or revise
any forward-looking information, whether as a result of new
information, future events or otherwise, except as required by
law.
SOURCE Canada Nickel Company Inc.